When to sell a business

Choosing the right time to sell a business can make a big difference to the price you can expect to achieve. If possible you should try to plan the sale of a business well in advance, rushing into a quick sale will probably worry potential buyers. Deciding to sell a business is a big step and it will pay you to be well prepared. You cannot start planning to sell you business too early, it is no coincidence that well organized businesses sell quicker.  

Trying to sell a business which is not performing well financially is always difficult, most buyers will sense the urgency and make low offers or be scared off. It is always best to try and market the business when sales and profits are increasing but have not yet reached their potential. Buyers will look for solid businesses which offer a good safe return on investment and that have potential to grow.  

Planning ahead gives you the opportunity to make sure that the business is presented in the best possible way. Put yourself in the buyers position and take a good objective view of the business. Try to highlight any issues that would put you off as a buyer, it is far better that you find them than the potential buyer. Make sure that all of the equipment, fixtures, and fittings is well maintained so that the buyer will have no concerns about capital expenditure on replacements after the purchase. This is also important to ensure that the buyer has less reasons to make a low offer. We all know that when you sell a business you rarely achieve or expect the asking price, by preparing well, and presenting the business properly you are more likely to attract serious offers.  

Naturally you should always consult your accountant or financial advisor before committing to sell a business. The timing of the sale should be planned according to your own tax situation and that of the business. Your accountant will also be able to advise you of any tax changes which may affect the sale of the business.


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